Fairholme Capital’s Bruce Berkowitz got hit with a big wave of redemptions last quarter.Through the end of September, investors have pulled nearly $4.7 billion in redemptions from Fairholme, according to BusinessWeek, which says:

Berkowitz’s fund, which was down 21% through last week, has been getting crushed by his bullish bets on financials, which have been getting killed this year thanks to market volatility and the ongoing eurozone debt crisis.

Fairholme held no Goldman Sachs or Morgan Stanley shares as of Aug. 31, according to a Form N-Q filed Oct. 28 with the U.S. Securities and Exchange Commission. The Miami-based mutual fund held 6.26 million Goldman Sachs shares and 34.8 million Morgan Stanley shares with a combined market value of $1.72 billion as of May 31, equaling almost 11 per cent of net assets.

According to the report, Berkowitz raised his stake in Bank of America to 81.9 million shares as of August 31, up from 77.3 million as of May 31. An analyst told Bloomber that BofA is a “high-conviction” position for Berkowitz.

The Bloomberg report said Berkowitz pared back his Citigroup stake by almost 2%.

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